Australia’s growth to slow to just 1.8% this year: Capital Economics

Quotes from Capital Economics:

- Australia's economy picked up less than expected in Q4, by a seasonally-adjusted 0.5% q/q, up from 0.4% in the previous quarter. In annual terms, the economy expanded by 2.5%. 

- Worse is likely to be ahead, given that the effects of a significant deterioration in the country's terms of trade are only just beginning to be felt. 

- We expect growth to slow from 2.7% in 2014 to just 1.8% this year.